Chinese experts called on the government to work out a strategy for purchasing raw materials abroad in a bid to cope with the rising prices that have threatened the country's economic development, the Economic Information Daily has reported.

The call came in the wake of price hikes in raw materials, such as iron ore, oil and copper early this year.

They said that China has to take advantage of global purchasing to play a role in determining the prices of raw materials and should try to make itself a raw material trade center.

Meanwhile, they called on Chinese companies to unite in purchasing primary products abroad to avoid internal competition.

Experts say China, as a big buyer of oil, copper and soybeans on the international market, however, has no say in determining the prices of those raw materials, and it has to pay high prices for speculation on such products on the international market.

The story said in 2004, China's imports of copper made up 20.6 percent of the world's total trade volume, and imports of soybean accounted for 31.2 percent. During the same period, the prices of crude oil and copper rose by 73 and 39 percent respectively.

The prices of soybean, corn and cotton also increased 112, 76 and 70 percent, record highs in the past decade.

As a result, China has to pay high prices to purchase the raw materials, because both the prices and the trade prices are controlled by developed countries, the report said.

It is estimated that China paid an additional US$4-8 billion in imports of oil in 2004 due to the high prices on the world market.

Experts warned the shortage of raw materials will restrict the rapid economic development of China, whose growth rate reached over 9 percent last year.

China is now the world's largest importer of iron ore, and the second largest importer of crude oil.

Statistics said that of the world's annual US$300 billion of increased trade volume over the past years, US$150 billion came from China.

(Xinhua News Agency April 11, 2005)